r/facepalm • u/flyingcatwithhorns 'MURICA • Aug 28 '24

🇲​🇮​🇸​🇨​ i'm speechless

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104

u/SmackedWithARuler Aug 28 '24

If a tip is mandatory then isn’t it a tax?

16

u/EarzFish Aug 28 '24

In the UK if you mandate a service charge, the company must pay tax on it. So they auto apply it as discretionary and hope nobody removes it. Then the companies take a percentage of it for "administration".

This all changes in october however when it will be law that 100% of tips go to staff.

4

u/moonmarriedacherry Aug 28 '24

Love that the gov will actually be passing that law.

I will say though, I’m lucky enough to have worked in places that respect and care for their employees enough to pay us our deserved wages AND keep our tips

2

u/NiceButOdd Aug 28 '24

Also, in the UK, the customer does not have to pay the service charge. It is totally optional and you can legally ask to have it taken off the bill.

1

u/EarzFish Aug 29 '24

Indeed. That is what I meant by discretionary.